Simulation: a fictional property for practice.
A bank-owned manufactured home on its own acre
A 2005 double-wide on one acre is listed by the bank for $165,000. Is it a house to a lender, and is the price right?
A fictional bank-owned home. Titling rules differ by state; your title company and lender confirm them.
- List price: $165,000, sold as-is by the bank that owns it
- Home: 2005 double-wide, 3 bed, 2 bath, 1,450 sq ft, on 1 acre
- Listing says: “Permanent foundation” and “HUD labels present”
- Your plan: Fix it and rent it for about $1,750 a month
Mission 1: Is it real estate?
Which would you confirm before a lender treats it like a house? Pick all that apply.
- The HUD certification labels and data plate are on the home
- It sits on a permanent foundation that meets the lender’s rules
- It’s legally part of the land: any vehicle-style title was retired or converted under your state’s process
- It’s on land the seller owns, so it’s automatically real estate
A manufactured home is financed like a house only when it’s legally real estate and meets the lender’s rules. Have the title company and lender confirm before you count on a mortgage.
Mission 2: What is it worth after repairs?
Which sales would you use? Pick all that fit.
- Sale A: $176,000 (2006 double-wide on 1 acre, 3 bed, 2 bath, updated, sold 3 months ago, 1 mile away)
- Sale B: $168,000 (2003 double-wide on 1.2 acres, 3 bed, 2 bath, updated, sold 2 months ago)
- Sale C: $265,000 (Site-built 3 bed, 2 bath house on 1 acre, sold last month)
- Sale D: $72,000 (Single-wide in a nearby park, on a rented lot)
Use sales of manufactured homes on similar land, not site-built houses or homes in parks.
Mission 3: The repairs the inspector found
Enter your budget before you see the example ranges.
- Engineer’s foundation certification
- Soft subfloor in the kitchen and bathroom
- Roof repairs over two leaks
- Skirting and steps
- Furnace replacement
About $13,000 to $31,000. At $165,000 plus about $22,000 of repairs, you’d have $187,000 in a home worth about $172,000.
At $165,000, what do you do?
Buy, investigate or pass? Work through the drill to see what an experienced investor would weigh.